Frenzied market activity in small cap stocks like Gamestop GME,
and AMC Entertainment AMC,
has attracted some amazing ideas all over Wall Street.
But while some might be embarrassed as a side view, this chart from Société Générale suggests that the skyrocketing benefits of smoking sections with shortening are much broader.
In fact, the shortest stocks in the $ 2000 trillion Russell 2000RUT index have seen significant gains since the end of last year, surpassing the rest of their peers.
The shortest shortened 5% has doubled in value since the end of October, outperforming the next shortest 5%, which, in turn, outperformed the shorten minimum sections.
“This high proportion has now broken away from the next, meaning that the short-term interest rate itself is the target for much of this activity,” Andrew Lapthorne, head of quantitative equity research at Société Générale, said in on Wednesday.
See: It’s not just a GameStop: Here are some of the other stocks that are very rare to shoot higher
Analysts have reported that retail traders gathering in platforms like Reddit and Discord were actively seeking stocks with a high percentage of short-term interest in an effort to generate short-term pressure. The hope is that short sellers with a penalty loss would cover their shorts and buy the stock back, accelerating gains.
The S&P 500 SPX,
the Dow Jones industrial average DJIA,
and Nasdaq Composite COMP,
on track for a 2% loss this week.
Read: Is trading in GameStop and AMC a major risk? Analysts measure inwards